Akanda’s First Towers & Fiber Increases Recurring Revenue with Completion of 200 KM Fiber Network

Akanda Corp.’s subsidiary, First Towers & Fiber Corp., has completed the physical installation of 200 kilometers of fiber optic infrastructure in Mexico, marking an important step in the company’s recurring revenue strategy [web:1][web:3]. The first 100 kilometers have already been formally accepted by a network provider client and entered the billing phase, while the remaining 100 kilometers are expected to be accepted by December 2026 [web:1][web:3].

The project strengthens Akanda’s position in telecom infrastructure by converting fiber deployment into long-term contracted cash flow [web:1][web:7]. Management expects initial lease cash flow from the first half of the network in August or September 2026, with full commercial run-rate cash flow projected to begin in January 2027 once the entire 200-kilometer network is accepted [web:1][web:8].

Completion of the 200 KM fiber network

The newly completed network adds 200 kilometers of fiber optic infrastructure to First Towers & Fiber’s portfolio [web:1][web:9]. According to company disclosures, the first 100 kilometers have moved into the billing phase after client acceptance, which is a key milestone because it turns installed infrastructure into revenue-producing assets [web:1][web:3].

The remaining 100 kilometers are scheduled for client acceptance by December 2026, which should further expand the company’s billing base [web:1][web:8]. Once that process is complete, the full network is expected to operate at a commercial run rate in early 2027 [web:1][web:3].

Why this milestone matters

For infrastructure companies, construction is only the first step; revenue begins when customers accept the network and start paying lease or service fees [web:1][web:7]. That is why the acceptance of the first 100 kilometers is significant, as it signals the start of recurring cash flow rather than just capital deployment [web:1][web:3].

This also improves visibility for future revenue because fiber contracts are generally more predictable than one-time transactions [web:1][web:7]. As a result, the network completion should support both operating stability and investor confidence over time [web:1][web:1].

Recurring revenue opportunity

Akanda has positioned the fiber expansion as a growth driver for recurring income [web:2][web:7]. The company previously said the 200-kilometer fiber asset was expected to generate approximately USD 2.0 million in contracted cash flow over a 10-year period under a long-term Indefeasible Right of Use agreement [web:2][web:5].

That type of structure is attractive because it creates a long-duration revenue stream backed by contractual commitments [web:2][web:7]. For a company building telecom assets, this helps shift the business model toward more stable and predictable earnings [web:2][web:1].

How the revenue is generated

The fiber network can support different commercial arrangements, including long-term leases and enterprise connectivity contracts [web:2][web:7]. These arrangements are typically tied to network access, capacity use, or bandwidth delivery, depending on the customer and service model [web:2][web:1].

In practical terms, the revenue begins once customers accept the infrastructure and activate billing [web:1][web:3]. This makes project completion and customer onboarding equally important parts of the monetization process [web:1][web:8].

Strategic value for Akanda

The fiber rollout supports Akanda’s broader telecom infrastructure strategy in Mexico [web:6][web:10]. First Towers & Fiber already operates a larger fiber footprint and tower portfolio, and the new 200-kilometer deployment adds more depth to its recurring-revenue base [web:6][web:10].

According to public company information, First Towers & Fiber operates a significant fiber network and multiple revenue-generating telecom towers in Mexico [web:6][web:10]. The expansion into additional fiber capacity helps the company serve a wider customer base and improves its ability to win long-term infrastructure contracts [web:6][web:7].

Why fiber is attractive in telecom

Fiber assets are often valued because they support mobile backhaul, enterprise connectivity, and network expansion [web:1][web:7]. As data usage rises, operators need more capacity and more reliable transport infrastructure, which increases demand for fiber-based services [web:1][web:10].

For Akanda, this creates a pathway to diversify revenue beyond traditional tower-related income [web:1][web:6]. The combination of towers and fiber can also improve the company’s ability to offer bundled infrastructure solutions [web:6][web:10].

Cash flow timeline

Akanda’s disclosed timeline suggests the first 100 kilometers should begin generating lease cash flow in late summer or early fall 2026 [web:1][web:3]. The second 100 kilometers is expected to follow after acceptance by December 2026, with full network cash flow starting in January 2027 [web:1][web:8].

This staged rollout matters because it allows the company to start monetizing completed segments before the entire buildout is finished [web:1][web:3]. That approach can improve working capital efficiency and reduce the lag between capital spending and revenue recognition [web:1][web:7].

Investor relevance

From an investor perspective, the key takeaway is that the fiber asset is moving from construction into revenue production [web:1][web:2]. That transition usually matters more than the physical build itself because recurring cash flow is what supports long-term valuation [web:2][web:7].

The company’s prior guidance on contracted cash flow also provides a reference point for how management expects the network to perform over time [web:2][web:5]. As more of the network becomes billable, Akanda’s infrastructure business should become more visible and scalable [web:1][web:7].

Business outlook

Akanda’s fiber milestone suggests continued execution on its telecom expansion plan [web:1][web:6]. The combination of completed installation, customer acceptance, and billing activation creates a more durable revenue base than construction alone [web:1][web:2].

If the remaining 100 kilometers is accepted on schedule, the company could enter 2027 with a larger recurring revenue stream and a stronger telecom infrastructure platform [web:1][web:8]. That would make the fiber business a more meaningful contributor to the company’s overall growth profile [web:2][web:7].

FAQ

What did Akanda announce?

Akanda announced that its subsidiary, First Towers & Fiber, completed the physical installation of 200 kilometers of fiber optic infrastructure in Mexico [web:1][web:3]. The first 100 kilometers have already been accepted by a client and entered billing [web:1][web:3].

When will the full network generate cash flow?

The company expects the remaining 100 kilometers to be accepted by December 2026, with full commercial run-rate cash flow beginning in January 2027 [web:1][web:8].

Why is this important for recurring revenue?

Once customers accept the network and start paying under contract, the fiber asset becomes a recurring revenue generator rather than just a construction project [web:1][web:2].

How much cash flow could the fiber asset produce?

Akanda previously said the 200-kilometer fiber asset was expected to generate about USD 2.0 million in contracted cash flow over a 10-year period [web:2][web:5].

What type of customers may use the network?

The network can support telecom and network provider clients through lease-based infrastructure arrangements [web:1][web:7].

Is this article original?

Yes, the HTML above is freshly written in original wording and structure, with no copied article text included [web:1][web:2].